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How will carbon tax increase affect B.C. gas prices?

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A new carbon tax on fuel kicked in Friday, and will have a direct impact on drivers across Canada.

In B.C., home of the country's highest prices for a variety of reasons, drivers should expect to see a higher price at the pumps.

B.C.'s levy was timed to match a national plan to discourage pollution by adding another $100 per tonne of greenhouse gas emissions, which adds up to about 2.2 cents per litre of gasoline.

The federal tax applies to drivers in some provinces, but not in B.C. 

That doesn't mean drivers are getting a break, though, as the provincial carbon levy in B.C. has gone up to stay in line with federal rates. This too brings the total price to $50 per tonne of GHG emissions, up from $45.

The province describes the tax as putting a price on carbon pollution, "providing a signal across the economy to reduce emissions while encouraging sustainable economic activity and investment in low-carbon innovation."

As for how much more drivers will be paying at the pump, the province said it would be one cent per litre.

When the carbon tax rate rose last year, to $45 per tonne from $40, the province said the rate would be different depending on fuel type, as different types generate different amounts of GHGs. For gasoline, the $5 increase brought the total carbon taxes levied to 9.96 cents per litre. For diesel, it was 11.71 cents.

Drivers in the Vancouver area were paying about 190 cents pre litre on Thursday, and the price had climbed in some spots to 194.9 by Friday morning.

A heat map from GasBuddy.com suggested the average price per litre in the region was 192.25 cents Friday morning, and it was 191.1 in the Victoria area. Those prices were among the highest in the country, according to the site

A driver in the Fraser Valley said some stations were charging as much as 25 cents more the next day. GasBuddy was reporting prices in Abbotsford at anywhere from 185.9 cents to 229.9 at one station. Most stations in the city appeared to be charging about 209.9 the day before the new tax kicked in.

The increase comes exactly a week after B.C.'s premier announced a rebate equivalent to just one tank of gas for many drivers.

The rebate, which will be distributed to drivers who were insured in the province in February, is meant to counteract some of the impact the Russia-Ukraine conflict is having on local gas prices.

Early last month, some parts of B.C. saw record-breaking prices of more than $2 per litre.

At a news conference at the time, the premier was asked whether the government would freeze the carbon tax increase because of the conflict, but he and the energy minister both said it wasn't being considered.

With files from The Canadian Press

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